PM Narendra Modi led Cabinet Committee on Economic Affairs (CCEA) has hiked minimum support price (MSP) of all mandated Rabi Crops. Now the Rabi Crops MSP 2019-20 is increased in line with fixing of MSPs at 1.5 times to all India weighted average cost of production (CoP). All the wheat farmers will get more than double the average cost of production.
Rabi crops are grown in winter and harvested in spring. Accordingly, Rabi MSP 2019-20 will be applicable for crops to be marketed in Rabi Marketing Season (RMS) 2020-21. This new MSP policy will assure minimum 50% as margin of profit.
Increase in Rabi Crops MSP 2019-20 is a major step towards doubling farmer’s income by 2022 & improving their welfare substantively.
Rabi Crops MSP 2019-20 Raised by Cabinet Committee
For the Rabi crops to be marketed in Rabi Marketing Season 2020-21, the highest increase in MSP is recommended for lentil (Rs. 325 per quintal). This Rabi Crops MSP 2019-20 increase is followed by Safflower (Rs. 270 per quintal) and gram (Rs. 255 per quintal) to raise the income of farmers. MSP of rapeseed and mustard is increased by Rs. 225 per quintal.
For wheat and barley, MSP has been raised by Rs. 85 per quintal and wheat farmers will get return over cost of 109%. Cost of production is a major factor to determine minimum support prices (MSPs). This year rise in Rabi Crops MSP for RMS 2020-21 will provide 50% higher return except safflower over India weighted average CoP. The return over all India weighted average CoP is 109% for wheat, 66% for barley, 74% for gram, 76% for lentil, 90% for rapeseed & mustard and 50% for safflower.
Food Corporation of India (FCI) and other state agencies will continue to provide price support to farmers in case of cereals. The respective state govt’s are going to take procurement of coarse grains with approval from central government. Moreover, the state govt. will even distribute entire procured quantity under NFSA. Govt. will provide subsidy for quantity issued under NFSA.
NAFED, SFAC and other central govt. agencies will continue to undertake procurement of pulses and oilseeds. The losses suffered by nodal agencies may be fully reimbursed by the central government as per the guidelines.
PM Kisan Samman Nidhi Yojana (PM-KISAN)
To ensure income security of farmers, central govt. has shifted its focus from production-centric approach to income-centric one. For this purpose, the Union govt. has increased coverage of PM Kisan Samman Nidhi Yojana (PM-KISAN) to all farmers. This decision was taken in 1st Union Cabinet meeting held on 31 May 2019 to boost farmer’s income.
PM-KISAN Samman Nidhi Yojana was announced in the Interim Budget 2019-2020. In this scheme, all the small and marginal landholder farmer families having cultivable land holding upto 2 hectare are getting Rs. 6000 per year in 3 equal installments.
PM Annadata Aay SanraksHan Abhiyan (PM-AASHA)
Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) umbrella scheme was announced by central government in FY 2018. This scheme aims to provide remunerative return to farmers for their produced crops. PM-AASHA scheme comprises of 3 sub-schemes – Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement &Stockist Scheme (PPSS) on a pilot basis.